A proposal to create hundreds of new generic top-level domains (gTLDs) is facing strong criticism from corporations, industry, and individuals, who say the plan is expensive and unnecessary.

Starting next year, the Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit organization that administers the Internet, plans to launch between 200 and 800 new domain name extensions, in addition to the familiar .com, .net, .org, and country-specific extensions.

ICANN says that the existing TLDs are getting too crowded and that the new gTLDs will offer more choice and competition. The new domains would be from 3 to 63 characters long and support Chinese, Arabic, and other scripts. The plan would also permit companies to run their own domains.

But many companies and industry groups want ICANN to cancel or postpone its plans.
Concerns center around two main issues: first, the lack of sufficient protection for trademark owners; and second, the high costs associated with establishing a new gTLD and protecting trademarks online. At the same time, critics argue, ICANN has not demonstrated a real need for the expansion.

ICANN is proposing fees of $185,000 to apply for a new gTLD and another $75,000 a year to keep it online. Companies say the costs are prohibitive in light of all the domains related to their company and product names that they will need to buy to protect their brands. Even community groups and governments that favor new gTLDs, such as New York City and Paris, say the fees are way too high. ICANN, which is a nonprofit organization, stands to earn millions of dollars from the new gTLD program.
Many commentators also labeled as unfair ICANN's variable pricing scheme, which would permit registrars of the new domains to charge different prices based on the popularity of a particular domain name instead of the uniform, regulated prices available today in .com or .net.

The costs associated with the new gTLD program do not stop there, critics say. Trademark owners, who are legally obligated to actively protect their marks, will need to spend hundreds of thousands of dollars to establish a gTLD for each of their trademarks. Critics say that so many new domains will create massive consumer confusion, where users will be unable to determine which is the valid domain. They also say that the new program will enable more cybersquatting, typosquatting, counterfeiting, fraud, and phishing scams, as fraudsters buy up domains related to their brands.

At a minimum, companies are urging ICANN to require applicants for a new gTLD that includes a trademark to prove that they own the mark, and notify trademark owners when others apply for a gTLD that includes their marks.
The Internet presently includes 21 gTLDs, as well as approximately 250-plus country code TLDs. More than half are registered in .com and .net.